Examination Documentation (ED) Modules
The Examination Documentation modules (ED Modules) define common objectives for the review of key bank activities at state chartered banks, which are supervised by the Federal Reserve, Federal Deposit Insurance Corporation, and State banking agencies.
At the Federal Reserve, examiners use the modules to document examination work at state member banks in the community and regional supervisory portfolios. The ED Modules are organized into three categories of examination procedures:
- Primary Modules cover examination planning and the assessment of Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity (CAMELS) ratings;
- Supplemental Modules cover examination procedures that examiners will perform on a particular bank operational activity, based on the scope of the examination; and
- Reference Modules provide examination procedures for assessing specific banking activities and regulations, with a focus on specialized lending areas.
The ED Modules are used in the risk-focused examination framework to tailor examination procedures to a bank's business model, complexity and risk profile. The extent to which an examiner completes the procedures in each module depends on a bank's risk exposure arising from a particular banking function or activity. This is described more fully in SR letter 19-9, "Bank Exams Tailored to Risk (BETR)." In general, examiners are not expected to perform every procedure within a module during a bank examination. For more information on the development and use of the ED Modules, see also the "Community Bank Supervision" section in the Commercial Bank Examination Manual (CBEM).